• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 3 hours Indonesia Stands Up to China. Will Japan Help?
  • 5 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 6 hours Trump capitulated
  • 9 hours Three oil pipeline projects inch toward goal-line for Canada
  • 14 hours The Libyan Oil in a Sea of Chaos, War and Disruptions
  • 1 day Trump has changed into a World Leader
  • 5 hours Gravity is a scam!
  • 8 hours Yet another Petroteq debt for equity deal
  • 4 hours US Shale: Technology
  • 21 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 18 hours OIL & GAS LOSSES! Schlumberger Posts $10B Loss in 2019
  • 1 day Beijing Must Face Reality That Taiwan is Independent
  • 1 hour Thanks to Trump, the Iranian Mullahs Are Going Bankrupt
  • 2 hours Which emissions are worse?: Cows vs. Keystone Pipeline
Alt Text

Bringing Transparency To China's Opaque Oil Market

Technological developments are improving market…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

The Deepest Exploration Well Ever Signals A Return For Offshore Oil

Oil prices have been a big item lately — with crude plunging below $45 per barrel in recent weeks.

But quiet reports across the industry show costs for oil and gas drillers may be falling even faster than that. With recent studies showing that offshore oil projects may actually be feasible at or near current prices.

That sentiment appears to be trickling through to project activity on the ground. With one first-of-a-kind exploration project announced this week showing that E&Ps are once again going big for offshore targets.

That project is in the Caspian Sea of central Asia. Where an international consortium of companies signed a “historic” deal this week to drill the deepest exploration well ever attempted by the global petroleum industry.

The so-called Eurasia project will be attempted by China’s CNPC along with Italy’s Agip, America’s NEOS GeoSolutions, Azerbaijan’s state oil firm SOCAR, and Kazakhstan’s RN-Exploration and KazMunayGas-Eurasia. With those partners having been cooperating for “several years” already in compiling data and geophysical studies on the play.

Here’s the plan: the partners will now prepare to drill an exploratory well up to 15 kilometers depth targeting oil under the Caspian depression. A feat that would eclipse the previous-deepest well ever drilled, the 12.3 kilometer Kola Bore Hole at Murmansk, Russia.

This will obviously be a massive technical challenge. But the consortium says the prize could be worth it — with estimates suggesting the deep basin here could hold up to 60 billion tonnes (429 billion barrels) of crude. Related: Goldman Sachs: Oil Crash Unlikely To Continue

Interestingly, the consortium is moving ahead with this target without the aid of any major names in the Western international E&P business. Meaning that a success here could mean a major shift in power away from the “big names” in the industry to rising players like CNPC.

No timeline was given for the drilling — watch for further announcements from the consortium on when exactly this record-breaker will come down. It won’t be immediate, but this is a potential gamechanger worth keeping an eye on.

Here’s to going deep.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • Henry on June 29 2017 said:
    With the world awash in oil projects like this should not only be banned they should be illegal
  • Bill Simpson on July 01 2017 said:
    BP is also working on developing new technology for such deep drilling.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News